![[Uganda] Petroleum directorate announces four new firms in oil exploration bid](Uganda oil.jpg)
[Uganda] Petroleum directorate announces four new firms in oil exploration bid
Four firms that had bided to carry out exploration and production of oil in key oil blocks in Uganda have received a nod from The Petroleum Directorate, of the Ministry of energy.
The four companies have now received formal invitation to start negotiations on the Production Sharing Agreements, PSAs.
The four firms are Australia's Armour Energy Limited, WalterSmithPetroman Oil Limited, Oranto Petroleum International Ltd and Niger Delta Petroleum Resources Ltd from Nigeria.
According to the directorate, Armour Energy had bided for the Kanywantaba (344 Km2) block in Ntoroko District; WalterSmithPetroman for the shallow and deep plays in the Turaco (425 Km2) in Ntoroko District, while Oranto Petroleum International Ltd and Niger Delta Petroleum Resources made a bid for the Ngassa (410 Km2) in Hoima District.
There are, however, other two exploration areas of Taitai & Karuka (565 Km2) in Buliisa, and Mvule (344 Km2) in Moyo/Yumbe, whose status remains unknown. The oil firms, on the other hand, shied away from Ngaji block, measuring about 895 Km2 between the South western districts of Rukungiri and Kanungu due to its eco-sensitivity.
"Further due diligence will be undertaken on the successful bidders with regard to their financial, technical and Health, Safety and Environment management capabilities prior to the issuance of licenses," Mr Ernest Rubondo the The Petroleum Directorate director said in a statement.
He added that the investments and activities arising out of the exploration work under these new exploration licences are expected to come at the same time as the investments and activities of developing the already discovered oil fields in the country and those for constructing the infrastructure for commercialisation, which include a refinery and an export pipeline.
"These multiple activities will lead to a significant increase in investment in Uganda's oil and gas sector and an increase in its knock-on effect on the other sectors of the economy."
The four firms were sieved from a shortlist of seven firms out of the 17 firms that submitted applications to participate in the first competitive oil licencing. These will join UK's Tullow Oil PLC, France's Total E &P and China' Cnooc licenced to operate in Uganda.
